If You Wanted to Test, Using a 5 $R ^ { 2 }$

question 11

Multiple Choice

If you wanted to test, using a 5 % significance level, whether or not a specific slope coefficient is equal to one, then you should

• A) subtract 1 from the estimated coefficient, divide the difference by the standard error, and check if the resulting ratio is larger than 1.96 .
• B) add and subtract 1.96 from the slope and check if that interval includes 1 .
• C) see if the slope coefficient is between 0.95 and 1.05 .
• D) check if the adjusted \(R ^ { 2 }\) is close to 1 .

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Definitions:

Dividend Payout Ratio

The percentage of net income that a company pays out to its shareholders as dividends, indicating how much money a company returns to shareholders versus retaining.

Price-Earnings Ratio

A measure of a company's current share price relative to its per-share earnings.

Dividend Payout Ratio

A financial ratio that shows the percentage of a company's net income that is paid out to its shareholders as dividends.

Year 2

A term that refers to the second year in a specific period, often used in planning, reporting, or comparison contexts.